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How New Mexico's Economy Benefits from International Trade & Investment
Contact: David Thomas, Business Roundtable, 202-496-3262, [email protected] www.brt.org/trade
Overview
With more than 95 percent of the world’s population and 80 percent of the world’s purchasing power outside
the United States, future economic growth and jobs for New Mexico and America increasingly depend on
expanding U.S. trade and investment opportunities in the global marketplace.
The following pages feature key facts and figures drawn from new Business Roundtable research, U.S.
government data, and other data sources that demonstrate the benefits of international trade and investment
to economic growth and jobs in New Mexico.
Why is International Trade & Investment Important to New Mexico?
International trade, including exports and imports, supports 217,198 New Mexico jobs – one in five.
These trade-related jobs grew 1.5 times faster than total employment from 2004 to 2013 and are at large
and small companies, on farms, in factories, and at the headquarters of New Mexico's globally engaged
firms. (See New Mexico Jobs Depend On Two-Way Trade)
New Mexico exported $2.9 billion in goods and $2.4 billion in services in 2013, including semiconductors
& components, misc. fabricated metal products, fruits & tree nuts and travel services. Of New Mexico's
1,301 exporters, 82 percent are small- and medium-sized companies with less than 500 workers. (See New
Mexico Businesses Grow With Exports)
Customers in 184 countries buy New Mexico-made goods and services, including significant annual
exports to top markets like Israel, Mexico and Canada. New Mexico's goods exports have grown 55 percent
faster than state GDP since 2003. (See New Mexico Companies Export Throughout The World)
Imports lower prices and increase choices for New Mexico companies and families. Lower raw material
and input costs help New Mexico companies stay competitive in global markets, while families can stretch
paychecks further as trade agreements reduce the cost of products by eliminating costly barriers to trade.
(See New Mexico Companies And Workers Use Imports To Compete)
Free trade agreements (FTAs) have helped fuel rapid export growth from New Mexico to partner
countries. In 2013, $2.0 billion of New Mexico's goods exports, or 70 percent, went to FTA partners. This
represents a 112 percent increase since 2003. (See New Mexico Needs Trade Agreements To Grow)
Foreign-owned companies invest and build facilities and employ 20,200 workers in New Mexico. (See
Foreign Investment In New Mexico Creates Jobs)
217,198
Number of Jobs in New Mexico Supported by Trade
11.2%
20.1%
1992 2013
Contact: David Thomas, Business Roundtable, 202-496-3262, [email protected] www.brt.org/trade
New Mexico Jobs Depend on Two-Way Trade
Overview
Creating and preserving quality U.S. jobs is a goal shared by all Americans. With more than 95 percent of the
world’s population and 80 percent of the world’s purchasing power outside of the United States, future
American economic growth and job creation depend on open markets abroad.
Trade Creates & Supports Jobs in New Mexico
Export growth increases jobs by generating new business
for New Mexico's manufacturers, service providers and
farmers. Imports support jobs and keep costs low, helping
New Mexico businesses compete and saving New Mexico
families real dollars at the cash register.
More than one in five New Mexico jobs depend upon
international trade.
New Mexico's trade-related employment grew 1.5 times
faster than total employment from 2004 to 2013.
Jobs in U.S. exporting plants pay on average up to 18
percent more than similar jobs in non-exporting plants.
U.S. exporting plants increase employment 2 to 4 percent
faster annually than plants that do not export. Exporting
plants also are less likely to go out of business.
Trade-supported jobs are not just at companies that
export and import. Trade supports higher wages for
workers and lower costs for companies and consumers,
providing them with more money to spend on other
things. This spending supports additional jobs throughout
the U.S. economy in sectors like entertainment, education
and construction.
By the Numbers
Share of Jobs Tied to Trade
Increased 80% from 1992 to 2013
Jobs Tied to Trade Top Sectors, 2013
Retail 26,400 Professional, Scientific, Tech Services 16,400 Management, Administrative Services 13,000 Real Estate, Rental Services 8,500 Finance, Insurance 7,600
1,301
Number of New Mexico Businesses that Exported in 2012
82%
Contact: David Thomas, Business Roundtable, 202-496-3262, [email protected] www.brt.org/trade
New Mexico Businesses Grow with Exports
Overview
New Mexico exported an estimated $2.9 billion in goods and $2.4 billion in services in 2013. Between 2009
and 2013, New Mexico goods exports have increased by 108 percent and services exports by 22 percent.
Large companies now account for 80 percent of the value of New Mexico's goods exports, with the rest
provided by small- and medium-sized enterprises (SMEs).
Small & Large Employers Partner to Export
In addition to exporting directly themselves, thousands of
American SMEs export indirectly when they sell goods and
services to large U.S. exporters. Based on their direct and
indirect export activity combined, SMEs represent more than
40 percent of the value of U.S. exports.
Top New Mexico Exports
New Mexico ranks among the top half of state exporters
in nine industries, including sixth in fruits & nuts ($122
million), 11th in vegetables & melons ($48 million), 13th
in dairy products ($113 million), and 16th in
semiconductors & parts ($937 million).
New Mexico is America’s 32nd largest exporter of
agricultural products. It is the third leading exporter of
tree nuts and ranks among the top 15 exporters of
vegetables and melons, dry peas and beans, cotton, and
hay.
One of New Mexico's fastest growing export categories is
engines & turbines, which have increased by 29 percent
per year since 2003. In 2013, exports of these products
reached $71 million.
By the Numbers
Share of New Mexico Exporters that are
Small- & Medium-Sized Businesses
Top New Mexico Exports, 2013
Goods Semiconductors & Components $937 million Petroleum & Coal Products $183 million Misc. Fabricated Metal Products $162 million Fruits & Tree Nuts $122 million Dairy Products $113 million
Services Travel $831 million R&D and Testing Services $359 million Industrial Processes Royalties $209 million
Contact: David Thomas, Business Roundtable, 202-496-3262, [email protected] www.brt.org/trade
New Mexico Companies Export throughout the World
In 2013, New Mexico companies sold their products in 184 international markets.
Top export markets include:
Goods exports accounted for 3.2 percent of New Mexico's state GDP in 2013.
New Mexico's goods exports have grown 55 percent faster than state GDP since 2003. The average annual export
growth during this period was 5.9 percent, while the average annual state GDP growth was 3.8 percent.
New Mexico's top export markets for goods are Israel, Mexico, and Canada. Its top market for services is Canada.
Among major export markets for New Mexico's goods, India has grown the fastest at 27 percent per year since
2003. Exports to Australia grew by 21 percent per year, while exports to Mexico grew by 17 percent per year.
Fast Facts: How Exports Help the New Mexico Economy Grow
Goods Exports: $330 million
Services Exports: $245 million
Goods Exports: $122 million
Services Exports: $147 million
CANADA
CHINA
Goods Exports: $789 million
Services Exports: $15 million
Goods Exports: $66 million
Services Exports: $167 million
Goods Exports: $786 million
Services Exports: $127 million
Goods Exports: $77 million
Services Exports: $96 million
ISRAEL
JAPAN
MEXICO
GERMANY
Contact: David Thomas, Business Roundtable, 202-496-3262, [email protected] www.brt.org/trade
New Mexico Companies & Workers Use Imports to Make Products and Compete in International Markets
Overview
In 2013, 60 percent ($1.3 trillion) of the products imported into the United States were inputs and
components used by American producers. Lower cost inputs keep U.S. manufacturing competitive in
international markets. Imports frequently contain components (like cotton or semiconductors) and services
inputs (like design) provided by U.S. companies and farmers, including companies and farmers in New Mexico.
Services, such as transportation, finance and insurance, marketing,
and legal services are needed to bring imported goods to New
Mexico's manufacturers and households.
In 2012, about 75 percent of identified U.S. importers were very
small businesses with less than 20 employees.
Trade and investment liberalization policies save the average New
Mexico family of four more than $10,000 per year.
Imports help keep prices down for New Mexico families while
increasing their choices for goods and services. Prices for imported
consumer goods tend to drop year after year.
And roughly three-quarters of U.S. importers were very small businesses with less than 20 employees.
In 2012, nearly 186,000 U.S. companies (including 1,063 in New Mexico) imported
products…
112%
Increase in New Mexico Goods Exports to FTA Partners Between 2003 and 2013
$0.14
$4.65
Non-FTACountries
FTA PartnerCountries*
Contact: David Thomas, Business Roundtable, 202-496-3262, [email protected] www.brt.org/trade
New Mexico Needs Trade Agreements to Grow
Overview
The United States has some of the lowest trade barriers in the world. Overall U.S. trade with our 20 free trade
agreement (FTA) partner countries supports 17.7 million American jobs. Trade agreements level the playing
field by lowering other nations’ trade barriers, opening up foreign markets to U.S. exports and setting strong,
enforceable rules for trade between the United States and those other countries. New Mexico has increased
its exports to FTA partners following implementation of the U.S. FTAs with those countries.
In 2013, $2.0 billion of New Mexico's goods exports, or
70 percent, went to FTA partners.
Since 2003 New Mexico's goods exports to countries
with FTAs in effect with the United States in 2012 have
increased by 112 percent.
New Mexico's exports to Canada and Mexico have
increased by $1.0 billion (878 percent) since NAFTA
went into effect in 1994.
New Mexico's exports to Australia have increased by
439 percent since the FTA with Australia took effect in
2005.
New Mexico's exports to Singapore of commercial and
service industry machinery have increased twenty-fold,
from just $181,000 to $3.6 million, since the FTA with
Singapore went into effect in 2004.
Israel bought 83 percent of New Mexico's exports of
semiconductors in 2013.
Countries negotiating the Trans-Pacific Partnership
(TPP) and Transatlantic Trade and Investment
Partnership (TTIP) agreements purchased $1.6 billion,
or 56 percent, of New Mexico's goods exports in 2013.
By the Numbers
Per Capita Purchases of U.S Goods, 2013
In 2013, FTA partners purchased 33.3 times more goods per capita from New Mexico than non-FTA partners.
* U.S. FTAs in effect with countries in 2013.
8,600
6,700
1,900
1,400
1,100
500
Other
Manufacturing
Information
Wholesale Trade
Retail Trade
Finance & Insurance
Overview
Foreign-owned companies invest significant amounts of capital to open or expand facilities in New Mexico
every year. Foreign-owned companies from around the world employ tens of thousands of workers in New
Mexico, including:
5,000 workers employed by companies
based in Germany;
3,800 workers employed by companies
based in Canada;
3,300 workers employed by companies
based in the United Kingdom;
1,300 workers employed by companies
based in France;
1,300 workers employed by companies
based in Switzerland.
Contact: David Thomas, Business Roundtable, 202-496-3262, [email protected] www.brt.org/trade
Foreign Investment in New Mexico Creates Jobs
Company Industry Country
AMEC Earth and Environmental Engineering & Consulting Services United Kingdom
ASML Albuquerque Semiconductor Machinery Mfg. Netherlands
BBVA Compass Bank Financial Services Spain
Bio Pappel International Paper Products Manufacturing Mexico
Cemex Cement Manufacturing Mexico
Encana Oil & Gas Mining Canada
Firestone Complete Auto Care Retailing Japan
Holiday Inn Hotel Services United Kingdom
Parex USA, Inc. Specialty Chemical Manufacturing France
Qinetiq North America, Inc. Research Services United Kingdom
Siemens Water Technologies Engineering Services Germany
Tetra Pak Cheese and Powder Food Processing/Packaging Products Switzerland
Selected Foreign-Owned Companies Employing Workers in New Mexico
Foreign-Owned Companies Employ 20,200 New
Mexico Workers Across Many Industries
Contact: David Thomas, Business Roundtable, 202-496-3262, [email protected] www.brt.org/trade
Data Sources
NEW MEXICO JOBS DEPEND ON TWO-WAY TRADE
Jobs-Tied-to-Trade: Baughman and Francois, “Trade and American Jobs, The Impact of Trade on U.S. and State-Level Employment: 2014 Update” (2014) (http://businessroundtable.org/resources/trade-and-american-jobs-2014-update)
Exporting Firm Wages: Riker, “Do Jobs in Export Industries Still Pay More? And Why?” (2010) (http://www.trade.gov/mas/ian/build/groups/public/@tg_ian/documents/webcontent/tg_ian_003208.pdf)
Exporting Firm Growth: Bernard and Jensen, “Exporting and Productivity in the USA” (2004) (http://faculty.tuck.dartmouth.edu/images/uploads/faculty/andrew-bernard/exprod.pdf)
NEW MEXICO BUSINESSES GROW WITH EXPORTS
Small and Large Firms Partnering to Export (for 2007, the most recent year for which data were available): U.S. International Trade Commission, Small and Medium-Sized Enterprises: Characteristics and Performance, November 2010, (http://www.usitc.gov/publications/332/pub4189.pdf)
Exports, Rankings, and Trends: The Trade Partnership, derived from U.S. Census Bureau (“Census”) data (http://tradepartnership.com/data/cdxports-and-cdxjobs)
Exporting Company Information: Census, “A Profile of U.S. Importing and Exporting Companies, 2011 – 2012” (http://www.census.gov/foreign-trade/Press-Release/edb/2012)
NEW MEXICO COMPANIES EXPORT THROUGHOUT THE WORLD
Exports, Rankings, and Trends: The Trade Partnership (http://tradepartnership.com/data/cdxports-and-cdxjobs)
Export vs. GDP Growth: Derived from Census export data and U.S. Bureau of Economic Analysis (BEA) “GDP by State” database (http://bea.gov/regional/index.htm)
NEW MEXICO COMPANIES & WORKERS USE IMPORTS TO COMPETE IN INTERNATIONAL MARKETS
Importing Company Information: Census, “A Profile of U.S. Importing and Exporting Companies, 2011 – 2012” (http://www.census.gov/foreign-trade/Press-Release/edb/2012)
Imports as Components: Derived from Census end-use import data
Savings from Liberalization: Bradford, Grieco, and Hufbauer, “The Payoff to America from Global Integration” (2005) (http://www.piie.com/publications/papers/2iie3802.pdf)
Price Changes: Derived from BLS Consumer Price Index database (http://www.bls.gov/cpi/)
NEW MEXICO NEEDS TRADE AGREEMENTS TO GROW
Exports and Trends: The Trade Partnership (http://tradepartnership.com/data/cdxports-and-cdxjobs)
Per Capita Purchases of New Mexico Goods: Derived from The Trade Partnership (http://tradepartnership.com/data/cdxports-and-cdxjobs) and World Bank population estimates
Jobs-Tied-to-FTAs: U.S. Chamber of Commerce, “Opening Markets, Creating Jobs: Estimated U.S. Employment Effects of Trade with FTA Partners” (2010) (http://tradepartnership.com/pdf_files/US%20Chamber%20-%20Opening%20Markets,%20Creating%20Jobs%20study.pdf)
FOREIGN INVESTMENT IN NEW MEXICO CREATES JOBS
Employment Data: BEA “Direct Investment & Multinational Companies” database (http://bea.gov/iTable/index_MNC.cfm)
Foreign Investors: Uniworld BP database of “Foreign Firms Operating in the United States” (http://www.uniworldbp.com)
